May 20, 2019 22:47 UTC
May 25, 2019 at 15:09 UTC
BTC Price Surge Warning By JP Morgan Chase Analysts
Bitcoin is trading at $7800+ at press time, and the people are trying to pick the brain of experts trying to predict which way will its value meander next.
The analysts at JP Morgan Chase have been using various tools to predict BTC’s future price. They are of the opinion that Bitcoin’s recent rally mirrors the crypto’s surge back in late 2017, before it went downhill suddenly.
Bloomberg reported that JP Morgan is factoring in the cost of energy and computing hardware that is required to power the network, in its analysis. The leading news publication reported:
“Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices… Defining an intrinsic or fair value for any cryptocurrency is clearly challenging. Indeed, views range from some researchers arguing that it has no fundamental value, to others estimating fair values well in excess of current prices.”
Meanwhile, various surveys and reports claim that BTC’s mainstream adoption has a bright future. Fideltiy digital assets recently conducted a survey of their own, gauging the market’s opinion on digital assets. The survey shows that almost half of institutional investors “see a place for digital assets in their portfolios.”
— Fidelity Digital Assets (@DigitalAssets) May 2, 2019
JP Morgan CEO Jamie Dimon hasn’t been BTC’s ardent admirer, and that is a well known fact. Hence, most of their reports are bearish when it comes to BTC future price predictions. Dimon had previously called Bitcoin a “fraud” in September of 2017 and threatened to fire any “stupid” employees caught dealing in the cryptocurrency.